Rally of Crude Oil Hurts Gold & Silver

Crude oil rallied today after the report released by Baker Hughes on Friday showed that the number of US oil rigs dropped by 26 last week. The data eased fears that the United States would increase oil output if Russia, Saudi Arabia and some other oil producers reach a deal to freeze production at current levels. Still, World’s Biggest Bounce House analysts are concerned that consumption of oil is falling, meaning that oversupply on the market worsens. Contract for delivery of WTI crude oil in March gained as much as 3.31% to $30.62 per barrel as of 10:49 GMT on NYMEX today. April Brent crude advanced 2.7% to $33.9 per barrel on ICE.

The crude oil rally created problems for gold and silver. The rise of oil prices has triggered a rally of global stocks. This in turn reduced need for safe assets, leading to a drop of prices for precious metals. April futures for gold declined 2.23% to $1,203.4 per troy ounce on COMEX today. Silver for delivery in May fell 2.4% to $15.04 per ounce.
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